The Bitcoin Price Discovery Reversal
What does Bitcoin need to do to rally into Price Discovery once again?
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Bitcoin Rallies Across Its Range
Last week, we spoke about how Bitcoin was inhabiting its macro range and how price needed to preserve the Range Low at $91k for price to continue meandering within it:
Here's today's update:
Bitcoin successfully retested the Range Low of ~$91k as support (blue).
In fact, Bitcoin was able to even downside wick into the old blue-blue range to grab some much needed liquidity before blasting to the upside across the entire range and even pressing beyond it to breakout.
Bitcoin has most recently Daily Closed above the Range High of $101k (black) and even post-breakout retested it into new support.
Therefore, BTC has turned this old Range High resistance into a new Range Low support of its brand new range:
The green circle demonstrates how the old Range High resistance is acting as a new Range Low support of a brand new range which encompasses the $101k-$106k region.
However, the new Range High of $106k continues to act as a point of rejection.
That being said, Bitcoin shares confluent support with a red diagonal trendline resistance which marked the multi-week downtrend that BTC had been struggling with over the past weeks:
This is diagonal I shared on Twitter some 5 days ago, when it still acted as resistance:
In any case, the fact that this diagonal is acting as a support which is confluent with the new Range Low at $101k makes a compelling case for this area figuring as strong support BTC will be able to rely on in its consolidation between $101k and $106k.
The Weekly
When it comes to the Weekly timeframe, Bitcoin is experiencing resistance at the same final major Weekly point of rejection from mid-December (blue, $104k).
However, BTC is also finding support at last week's candle-bodied highs (blue, green circle, $101k).
As a result, BTC is also creating a Weekly range (blue-blue) and is a little bit reminiscent to the price action from early December 2024.
Which is why BTC will need to Weekly Close above the $104k major resistance to breakout to new highs.
Generally, if BTC rejected from the blue $104k Weekly resistance to drop down into the ~$89k level a few weeks ago, then any rejection from this same resistance should yield a shallower pullback to demonstrate that this level is weakening as a point of rejection.
As long as the $101k area holds as support, perhaps this recent rejection will be enough of a pullback to demonstrate that the $104k resistance is weakening as a point of rejection.